European Union States Approve Groundbreaking Cryptoasset Regulations, Pressuring Other Countries to Catch Up

In a significant development, European Union (EU) states unanimously granted final approval on Tuesday to the world's first comprehensive set of regulations aimed at governing cryptoassets. The move places increased pressure on nations like Britain and the United States to expedite their regulatory frameworks in response.

During a meeting of EU finance ministers in Brussels, the approved regulations were the result of extensive negotiations with the European Parliament, which had given its endorsement in April. The effective implementation of these rules is expected to commence from 2024.

Regulatory oversight of the crypto industry has become an increasingly urgent priority for authorities following the collapse of FTX, a prominent crypto exchange. Acknowledging this urgency, Elisabeth Svantesson, the finance minister for Sweden, which currently holds the EU presidency, stated, "Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of the crypto industry for the purposes of money laundering and financing of terrorism."

Under these new regulations, firms operating within the 27-country bloc that intend to issue, trade, and safeguard cryptoassets, tokenized assets, and stablecoins will be required to obtain a license.

In a concerted effort to combat tax evasion and money laundering through cryptoasset transfers, ministers have implemented measures to enhance transaction traceability. As of January 2026, service providers will be obligated to collect information about both the senders and beneficiaries of cryptoasset transactions, irrespective of the transfer amount.

Furthermore, agreement has been reached on amending rules related to how member countries cooperate with one another in taxation matters concerning crypto-assets. Additionally, there is an understanding to share information regarding advance tax rulings for high-net-worth individuals.

In response to the demand for regulatory certainty expressed by crypto firms, pressure is mounting on countries to adopt regulations similar to those of the EU. Furthermore, regulators are urged to establish global standards to facilitate cross-border activities within the crypto industry.

While Britain has outlined a phased approach to regulation, initially focusing on stablecoins and later expanding to include un-backed cryptoassets, no firm timetable has been established. In the United States, the approach has revolved around employing existing securities regulations for enforcement actions, while deliberations continue regarding the introduction of bespoke regulations and determining the responsible regulatory body.

Addressing the current state of regulation in the U.S. crypto sector, Hester Peirce, one of the commissioners at the U.S. derivatives regulator CFTC, expressed, "We are wandering in the desert a bit," during a conference. Peirce highlighted ongoing discussions among federal and state authorities to ascertain the potential oversight roles they could assume within the crypto industry.